Companies

London-based GFG Alliance acquires Adhunik Metaliks, its arm to mark India entry

PTI New Delhi | Updated on February 18, 2020 Published on February 18, 2020

Billionaire Sanjeev Gupta-led GFG Alliance on Tuesday announced the acquisition of Adhunik Metaliks and its arm Zion Steel for about ₹425 crore, marking its entry into the Indian steel market.

London-based GFG Alliance is a global group of energy, mining, metals, engineering and financial services businesses, which was eyeing Indian market for long.

In December 2019, L N Mittal’s ArcelorMittal completed the acquisition of Essar Steel to enter the Indian market.

GFG Alliance on Tuesday completed the strategic acquisition of Adhunik Metaliks Ltd (Adhunik) and Zion Steel Ltd (Zion) in a ₹4.25 billion or $60 million cash deal. The transaction marks the Alliance’s entry into India, the London-based group said in a statement.

The immediate focus, it said, will be on reviving and restoring the facilities and operations of the two companies, and once stabilised the business will begin its integration into the Liberty Steel Group, a part of GFG Alliance.

Commenting on the acquisition, India-born British businessman and Executive Chairman of GFG Alliance Sanjeev Gupta said: “Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India. India is one of the fastest growing and most vibrant steel markets in the world.”

Adhunik has an integrated steel plant located at Chadrihariharpur near Rourkela in Odisha. The plant has both blast furnace and Electric Arc Furnace steel making capability with 0.5 million tonne per annum capacity, and a 34 MW captive power plant.

Published on February 18, 2020
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